74R10705 T
By Heflin H.B. No. 2941
Substitute the following for H.B. No. 2941:
By Heflin C.S.H.B. No. 2941
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal of property for tax purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.07, Tax Code, is amended by adding a
1-5 new Subsection (d) to read as follows:
1-6 (d) A notice required by Sec. 11.45, 23.44(d), 23.57(d),
1-7 23.79(d), 23.85, or 23.95(e) shall be delivered by certified mail.
1-8 SECTION 2. Subchapter C, Chapter 6, Tax Code, is amended by
1-9 adding Section 6.414 to read as follows:
1-10 Sec. 6.414. TRAINING. (a) The Comptroller shall establish
1-11 minimum standards for training all members of appraisal review
1-12 boards.
1-13 (b) A person appointed as a member of an appraisal review
1-14 board is required to attend and receive certification of
1-15 participation in a training program approved by the Comptroller in
1-16 accordance with rules adopted by the Comptroller as a prerequisite
1-17 to participation in hearings.
1-18 SECTION 3. Subchapter C, Tax Code, is amended by adding
1-19 Section 6.415 to read as follows:
1-20 Sec. 6.415. ELIGIBILITY OF FORMER OFFICERS AND DIRECTORS OF
1-21 TAX ENTITIES IN COUNTIES OF MORE THAN 50,000 POPULATION. Any
1-22 person who has been an elected or appointed officer, director,
1-23 employee in a tax collection office, or employee in a budgetary or
2-1 fiscal planning office of a taxing unit or an appraisal district in
2-2 a county of more than 50,000 population is not eligible to serve on
2-3 an appraisal review board that reviews appraisals of property
2-4 within such taxing entity or appraisal district.
2-5 SECTION 4. Subsection (h), Section 11.251, Tax Code, is
2-6 amended to read as follows:
2-7 (h) The chief appraiser by written notice delivered to a
2-8 property owner who claims an exemption under this section may
2-9 require the property owner to provide copies of inventory or
2-10 property records in order to determine the amount and value of
2-11 freeport goods. If the property owner fails to deliver the
2-12 information requested in the notice before approval of the
2-13 appraisal records by the appraisal review board <the 31st day after
2-14 the date the notice is delivered to the property owner>, the
2-15 property owner forfeits the right to claim or receive the exemption
2-16 for that year.
2-17 SECTION 5. Chapter 11, Tax Code, is amended by adding a new
2-18 Section 11.437 to read as follows:
2-19 Sec. 11.437. LATE APPLICATION FOR FREEPORT EXEMPTION. (a)
2-20 The chief appraiser shall accept and approve or deny an application
2-21 for exemption under Section 11.251 of this Code after the deadline
2-22 for filing it has passed if it is filed before approval of the
2-23 appraisal records by the appraisal review board.
2-24 (b) If an exemption under Section 11.251 of this Code is
2-25 approved when the application is filed late, the owner is liable
3-1 for a penalty of 10 percent of the difference between the amount of
3-2 tax imposed on the property and the amount that would be imposed if
3-3 the property were taxed at market value.
3-4 (c) The chief appraiser shall make an entry on the appraisal
3-5 records indicating the person's liability for the penalty and shall
3-6 deliver written notice of imposition of the penalty, explaining the
3-7 reason for its imposition, to the person.
3-8 (d) The tax assessor for a taxing unit that taxes property
3-9 subject to exemption under Section 11.251 of this Code after a late
3-10 application shall add the amount of the penalty to the owner's tax
3-11 bill, and the tax collector for the unit shall collect the penalty
3-12 at the time and in the manner he collects the tax. The amount of
3-13 the penalty constitutes a lien against the property against which
3-14 the penalty is imposed, as if it were a tax, and accrues penalty
3-15 and interest in the same manner as a delinquent tax.
3-16 SECTION 6. Subsection (a), Section 22.23, Tax Code, is
3-17 amended to read as follows:
3-18 (a) Rendition statements and property reports must be
3-19 delivered to the chief appraiser after January 1 and not later than
3-20 <before> April 15, except as provided by Section 22.02 of this
3-21 code.
3-22 SECTION 7. Subsection (f), Section 23.55, Tax Code, is
3-23 amended to read as follows:
3-24 (f) The sanctions provided by Subsection (a) of this section
3-25 do not apply if the change of use occurs as a result of the
4-1 transfer by sale, gift, or otherwise, <a sale> for right-of-way or
4-2 other public purpose, or a condemnation.
4-3 SECTION 8. Subsection (c), Section 33.01, Tax Code, is
4-4 amended to read as follows:
4-5 (c) A delinquent tax accrues interest at a rate of one
4-6 percent for each month or portion of a month the tax remains
4-7 unpaid. Interest payable under this section is to compensate the
4-8 taxing unit for revenue lost because of the delinquency. A
4-9 delinquent tax continues to accrue interest under this subsection
4-10 as long as the tax remains unpaid, regardless of whether a
4-11 judgement for the delinquent tax has been rendered.
4-12 SECTION 9. Section 33.41, Tax Code, is amended by adding a
4-13 new Subsection (d) to read as follows:
4-14 (d) A suit brought under Subsection (a) against the personal
4-15 representative of an estate who is acting under the control and
4-16 supervision of a probate court need not be filed in that probate
4-17 court, but may instead be brought in a court of competent
4-18 jurisdiction of the county in which the tax was imposed. All
4-19 provisions relative to the presentment of a claim against an estate
4-20 as a prerequisite for judgement shall not be construed as to apply
4-21 to any claim for delinquent taxes owing to a taxing unit.
4-22 SECTION 10. Subsection (c), Section 33.47, Tax Code, is
4-23 amended to read as follows:
4-24 (c) In a suit to collect a tax, a tax receipt issued under
4-25 Section 31.075 of this code, or an electronic replica of the
5-1 receipt, that states that a tax has been paid is <constitutes>
5-2 prima facie evidence that the tax has been paid as stated by the
5-3 receipt or electronic replica.
5-4 SECTION 11. Section 33.51, Tax Code, is amended to read as
5-5 follows:
5-6 Sec. 33.51. Writ of Possession. If the court orders the
5-7 foreclosure of a tax lien and the sale of real property, the
5-8 judgment shall provide for the issuance by the clerk of said court
5-9 of a writ of possession to the purchaser at the sale or to the
5-10 purchaser's <his> assigns no sooner than 20 days following the date
5-11 on which the purchaser's deed from the sheriff or constable is
5-12 filed of record <within 20 days after the period of redemption
5-13 expires>.
5-14 SECTION 12. Subsections (a) and (b) of Section 33.52, Tax
5-15 Code, are amended, and Subsection (c) of Section 33.52 is added, to
5-16 read as follows:
5-17 Sec. 33.52. Judgment for Current Taxes. (a) If the court
5-18 orders the foreclosure of a tax lien and the sale of real property
5-19 the judgment shall, on motion of the taxing unit, order that the
5-20 taxing unit recover from the proceed of the sale the amount of tax
5-21 on the property for the current tax year <prorated to the date of
5-22 the judgment>.
5-23 (b) If the amount of tax for the current tax year has not
5-24 been determined on the date of judgment the court shall, on motion
5-25 of the taxing unit, order recovery of the amount of tax imposed on
6-1 the property for the preceding tax year<, prorated to the date of
6-2 judgment>.
6-3 (c) If the judgement does not provide for recovery of taxes
6-4 imposed for the current tax year, or for recovery of estimated
6-5 taxes that cannot then be calculated for the current year, the real
6-6 property is subject to the taxes for the current tax year and to
6-7 the lien that secures those taxes, and any subsequent purchaser
6-8 takes the property subject to those taxes and the tax lien.
6-9 SECTION 13. Subsection (a) of Section 34.05, Tax Code, is
6-10 amended to read as follows:
6-11 (a) If property is sold to a taxing unit that is a party to
6-12 the judgement the taxing unit may sell the property at any time
6-13 subject to any right of redemption existing at the time of the
6-14 sale. In selling the property, the taxing unit may, but is not
6-15 required to, use the procedures provided by Section 272.001, Local
6-16 Government Code.
6-17 SECTION 14. Section 34.21, Tax Code, is amended to read as
6-18 follows:
6-19 Sec. 34.21. Right of Redemption. (a) The owner of real
6-20 property sold at a tax sale to a purchaser other than a taxing unit
6-21 and that was the residence homestead of the owner or that was land
6-22 designated for agricultural use when the suit to collect the tax
6-23 was filed may redeem the property within two years after the date
6-24 on which the purchaser's deed is filed for record by paying the
6-25 purchaser the amount the purchaser bid for the property, the amount
7-1 of the deed recording fee, and the amount paid by the purchaser as
7-2 taxes, penalties, interest, and costs on the property, plus a
7-3 redemption premium of 25 percent of the aggregate total if the
7-4 property is redeemed during the first year of the redemption period
7-5 or 50 percent of the aggregate total if the property is redeemed
7-6 during the second year of the redemption period.
7-7 (b) If property that was the owner's residence homestead or
7-8 was land designated for agricultural use when the suit to collect
7-9 the tax was filed is bid off to a taxing unit under Section
7-10 34.01(c) and has not been resold by the taxing unit, the owner
7-11 having a right of redemption may redeem the property within two
7-12 years after the date on which the deed or the taxing unit is filed
7-13 for record by paying the taxing unit the amount of the judgement
7-14 against the property or the market value of the property as
7-15 specified in that judgement, whichever is less, plus the amount of
7-16 the fee for filing the taxing unit's deed and the amount expended
7-17 by the taxing unit as costs on the property.
7-18 (c) If real property that was the owner's residence
7-19 homestead or was land designated for agricultural use when the suit
7-20 to collect the tax was filed has been resold by the taxing unit
7-21 under Section 34.05, the owner of the property having a right of
7-22 redemption may redeem the property within two years after the date
7-23 on which the taxing unit files for record the deed from the sheriff
7-24 or constable by paying the person who purchased the property from
7-25 the taxing unit the amount the purchaser paid for the property, the
8-1 amount of fee for filing the purchaser's deed for record, the
8-2 amount paid by the purchaser as taxes, penalties, interest and
8-3 costs on the property, plus a redemption premium of 25 percent of
8-4 the aggregate total if the property is redeemed in the first year
8-5 of the redemption period or 50 percent of the aggregate total if
8-6 the property is redeemed in the second year of the redemption
8-7 period.
8-8 (d) <(b)> The owner of real property sold at a tax sale
8-9 other than property <covered by Subsection (a)> that was the
8-10 residence homestead of the owner or that was land designated for
8-11 agricultural use when the suit to collect the tax was filed may
8-12 redeem the property <within> in the same manner and by paying the
8-13 same amounts as prescribed by Subsection (a), (b), or (c), as
8-14 applicable, except that:
8-15 (1) the owner's right of redemption expires after six
8-16 months <after> following the date on which the purchaser's or
8-17 taxing unit's deed is filed for record <by paying the purchaser the
8-18 amount the purchaser bid for the property, the amount of the deed
8-19 recording fee, and the amount paid by the purchaser as taxes,
8-20 penalties, interest, and costs on the property, plus 25 percent of
8-21 the aggregate total.>, and
8-22 (2) the redemption premium payable by the owner to a
8-23 purchaser other than a taxing unit shall not exceed 25 percent.
8-24 (e) <(c)> If the owner of the real property makes an
8-25 affidavit that the owner <he> has made diligent search in the
9-1 county on which the property is located for the purchaser at the
9-2 tax sale or for the purchaser at resale, and has failed to find
9-3 that purchaser <him>, that the purchaser <at the sale> is not a
9-4 resident of the county in which the property is located, that the
9-5 owner <he> and the purchaser cannot agree on the amount of
9-6 redemption money due, or that the purchaser refuses to give the
9-7 owner <him> a quitclaim deed to the property, the owner may redeem
9-8 the property <land> by paying the required amount as prescribed by
9-9 this section <Subsection (a) or (b), as applicable,> to the
9-10 assessor-collector for the county in which the property is located.
9-11 The assessor-collector receiving the payment shall give the owner a
9-12 signed receipt witnessed by two persons. The receipt, when
9-13 recorded, is notice to all persons that the property described has
9-14 been redeemed. The assessor-collector shall on demand pay the
9-15 money received by the assessor-collector <him> to the purchaser <at
9-16 the tax sale>.
9-17 (f) <(d)> The right of redemption does not grant or reserve
9-18 in the former owner of the real property the right to the use or
9-19 possession of the property, or to receive rents, income or other
9-20 benefits from the property while the right of redemption exists.
9-21 (g) <(e)> In this section, "residence homestead" has the
9-22 meaning assigned by Section 11.13.
9-23 (h) <(f)> In this section, "agricultural use" has the
9-24 meaning assigned by Section 23.51.
9-25 (i) In this section, "costs" is defined to include all those
10-1 amounts reasonably expended by a purchaser or taxing unit in the
10-2 maintenance, preservation, and safekeeping of the property,
10-3 included but not limited to:
10-4 (1) insurance against fire, flood. and other hazards,
10-5 (2) repairs and improvements required by local
10-6 ordinance, building code, or by the terms of any existing lease of
10-7 the property, whether written or oral,
10-8 (3) discharge of mowing, cleaning, or demolition liens
10-9 against the property which secure expenses incurred by a
10-10 municipality,
10-11 (4) dues, assessments for maintenance, or lines
10-12 provided by recorded restrictive covenants affecting the property
10-13 and payable to a property owners' association, and
10-14 (5) standby fees payable to a water district, fresh
10-15 water supply district, or other municipality as authorized by law.
10-16 SECTION 15. Section 34.23, Tax Code, is amended to read as
10-17 follows:
10-18 Sec. 34.23. Distribution of Redemption Proceeds. <(a)> If
10-19 the owner of property sold for taxes to a taxing unit redeems the
10-20 property before the property is resold, the taxing unit shall
10-21 distribute the redemption proceeds in the manner that proceeds of
10-22 the resale of property are distributed.
10-23 <(b) If the owner of property sold for taxes redeems from
10-24 the taxing unit after the property has been resold, the taxing unit
10-25 shall pay the purchaser at the resale the amount he paid for the
11-1 property, plus 25 percent of that amount if the redemption occurs
11-2 within one year of the date the property is resold or 50 percent of
11-3 that amount if the redemption occurs more than one year after the
11-4 date the property is resold. The taxing unit shall distribute the
11-5 redemption proceeds remaining after payment of the amount due the
11-6 purchaser at resale to the taxing units adjudged to have tax liens
11-7 against the property in the proportion the amount of each unit's
11-8 lien bears to the total amount of all liens established in the
11-9 foreclosure suit.>
11-10 SECTION 16. Section 41.01, Tax Code, is amended to read as
11-11 follows:
11-12 Sec. 41.01. Duties of Appraisal Review Board. (a) The
11-13 appraisal review board shall have the authority to:
11-14 (1) determine protests initiated by property owners;
11-15 (2) determine challenges initiated by taxing units;
11-16 (3) correct clerical errors in the appraisal records
11-17 and the appraisal rolls;
11-18 (4) act on motions to correct appraisal rolls under
11-19 Section 25.25;
11-20 (5) determine whether an exemption or a partial
11-21 exemption is improperly granted and whether land is improperly
11-22 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
11-23 and
11-24 (6) take any other action or make any other
11-25 recommendation that this title specifically authorizes or requires.
12-1 (b) the appraisal review board may not engage in any
12-2 activity or make any determination not specifically authorized by
12-3 this Code. No other authority is granted or implied.
12-4 SECTION 17. Section 41.44, Tax Code, is amended by adding a
12-5 new Subsection (e) to read as follows:
12-6 (e) The appraisal review board shall accept and consider a
12-7 protest filed by an agent of a property owner if an agency
12-8 authorization is filed at or before the hearing on the protest.
12-9 SECTION 18. Section 41.45, Tax Code, is amended by amending
12-10 Subsections (b), (d), and (e), and adding a new Subsection (g) to
12-11 read as follows:
12-12 (b) The property owner initiating the protest is entitled to
12-13 an opportunity to appear to offer evidence or argument. The
12-14 property owner may offer his evidence or argument by affidavit
12-15 without personally appearing if he attests to the affidavit before
12-16 an officer authorized to administer oaths and submits the affidavit
12-17 to the board hearing the protest before it begins the hearing on
12-18 the protest. On receipt of an affidavit, the board shall notify
12-19 the chief appraiser. The chief appraiser may inspect the affidavit
12-20 and is entitled to a copy on request. An affidavit shall identify
12-21 the protesting property owner, the property that is the subject of
12-22 the protest, and a statement by the owner on a determination of the
12-23 appraisal district relevant to the property that is the subject of
12-24 the protest. The comptroller shall prescribe a standard form for
12-25 an affidavit that requires the property owner to provide this
13-1 information. Appraisal districts shall make copies of the form
13-2 available to property owners.
13-3 (d) An appraisal review board consisting of more than three
13-4 members may sit in panels of not fewer than three members to
13-5 conduct protest hearings. However, the determination of a protest
13-6 heard by a panel must be made by the board. If the determination
13-7 of a panel is not accepted by the board, the board may refer the
13-8 matter for rehearing to a panel composed of members who did not
13-9 hear the original hearing or, if there are not at least three
13-10 members who did not hear the original protest, the board may
13-11 determine the protest. Before determining a protest or conducting
13-12 a rehearing before a new panel, the board shall deliver notice of
13-13 the hearing or meeting to determine the protest in accordance with
13-14 the provisions of this subchapter.
13-15 (e) The board shall postpone the hearing to a later date if:
13-16 (1) the property owner or the owner's agent shows good
13-17 cause for the postponement;
13-18 (2) the property owner or the owner's agent provides a
13-19 copy of a notice for a hearing addressed to the property owner or
13-20 to the individual representing the property owner set by another
13-21 appraisal district for the same date and bearing a postmark earlier
13-22 than the date on which the appraisal review board delivered its
13-23 notice of the hearing, or
13-24 (3) <if> the chief appraiser consents to the
13-25 postponement. The hearing may not be postponed to a date less than
14-1 five or more than 15 days after the date scheduled for the original
14-2 hearing unless the date and time of the hearing as postponed are
14-3 agreed to by the appraisal review board, the property owner, and
14-4 the chief appraiser. Postponement under this subsection does not
14-5 require the delivery of additional written notice to the property
14-6 owner.
14-7 (g) Prior to or immediately upon opening a hearing on a
14-8 protest, the chief appraiser and the property owner or the owner's
14-9 agent shall exchange copies of all written materials that will be
14-10 provided to the appraisal review board during the hearing.
14-11 SECTION 19. Chapter 41, Tax Code, is amended by adding a new
14-12 Section 41.48 to read as follows:
14-13 Sec. 41.48. SETTLEMENT AGREEMENTS. The chief appraiser
14-14 shall change the appraisal records or the appraisal roll to reflect
14-15 any agreement between the property owner or the owner's agent and
14-16 the chief appraiser that is final pursuant to Section 1.111(e) of
14-17 this Code. A property owner or the owner's agent may file suit in
14-18 a court having jurisdiction to compel the chief appraiser to comply
14-19 with this section.
14-20 SECTION 20. Subsection (c), Section 41.61, Tax Code, is
14-21 amended to read as follows:
14-22 (c) An appraisal review board may not issue a subpoena under
14-23 this section unless the board holds a hearing at which the board
14-24 determines that good cause exists for the issuance of the subpoena.
14-25 The appraisal review board before which a good cause hearing is
15-1 scheduled shall deliver written notice to the party being
15-2 subpoenaed and parties to the protest of the date, time, and place
15-3 of the hearing. The board shall deliver the notice not later than
15-4 the 5th day before the date of the good cause hearing. The party
15-5 being subpoenaed must have an opportunity to be heard at the good
15-6 cause hearing.
15-7 SECTION 21. Subsection (b), Section 42.06, Tax Code, is
15-8 repealed and Subsections (c), (d), and (e) of Section 42.06 are
15-9 amended to read as follows:
15-10 (b) <(c)> A party other than a chief appraiser or property
15-11 owner who appeals an order of an appraisal review board shall file
15-12 the notice with the chief appraiser of the appraisal district for
15-13 which the appraisal review board is established. A chief appraiser
15-14 who appeals an order of an appraisal review board shall file the
15-15 notice with the appraisal review board. A party who appeals an
15-16 order of the comptroller shall file the notice with the
15-17 comptroller.
15-18 (c) <(d)> If the chief appraiser, a taxing unit, or a county
15-19 appeals, the chief appraiser, if the appeal is of an order of the
15-20 appraisal review board, or the comptroller, if the appeal is of an
15-21 order of the comptroller, shall deliver a copy of the notice to the
15-22 property owner whose property is involved in the appeal within 10
15-23 days after the date the notice is filed.
15-24 (d) <(e)> On the filing of a notice of appeal, the chief
15-25 appraiser shall indicate where appropriate those entries on the
16-1 appraisal records that are subject to appeal.
16-2 SECTION 22. Subsection (b), Section 42.43, Tax Code, is
16-3 amended to read as follows:
16-4 (b) For a refund made under this section because an
16-5 exemption under Section 11.20 that was denied by the chief
16-6 appraiser or appraisal review board is granted, the taxing unit
16-7 shall include with the refund interest on the amount refunded
16-8 calculated at an annual rate that is equal to the auction average
16-9 rate quoted on a bank discount basis for three-month treasury bills
16-10 issued by the United States government, as published by the Federal
16-11 Reserve Board, for the week in which the taxes became delinquent,
16-12 but not more than 10 percent, calculated from the delinquency date
16-13 for the taxes until the date the refund is made. For any other
16-14 refund made under this section, the taxing unit shall include with
16-15 the refund interest on the amount refunded at an annual rate of
16-16 <that is equal to the auction average rate quoted on a bank
16-17 discount basis for three-month treasury bills issued by the United
16-18 States government, as published by the Federal Reserve Board, for
16-19 the week in which the taxes became delinquent, but not more than>
16-20 eight percent, calculated from the delinquency date for the taxes
16-21 until the date the refund is made.
16-22 SECTION 23. Section 6.035, Tax Code, is amended by adding
16-23 Subsection (e) to read as follows:
16-24 (e) An individual who has served as a chief appraiser may
16-25 not represent a property owner before the appraisal review board
17-1 for the county in which that individual served as chief appraiser
17-2 in a protest or other proceeding related to an appraisal record or
17-3 appraisal roll created during that individual's service as chief
17-4 appraiser.
17-5 SECTION 24. The provisions of Section 2 and Section 3 apply
17-6 to an appraisal review board member whose term begins on or after
17-7 January 1, 1996.
17-8 SECTION 25. The importance of this legislation and the
17-9 crowded condition of the calendars in both houses create an
17-10 emergency and an imperative public necessity that the
17-11 constitutional rule requiring bills to be read on three several
17-12 days in each house be suspended, and this rule is hereby suspended.